Broomer's Blog

So, how are we doing?

Our Managed Portfolio Service has just passed through its three-year anniversary. While we do not look to compete principally on performance, I was curious to see how our portfolios have done in relation to others.

In the below chart, we have added the fee adjusted performance and volatility characteristics of our longest standing volatility managed portfolio range. These portfolios (highlighted in orange) can be compared to funds in the IA Volatility Managed sector.

As it can be seen, the results to date have been strong with our portfolio range producing higher returns than others in the sector operating with a similar level of volatility.

However, we should stress that this has been a period of two halves. Our style of investing produced robust relative returns during the difficult markets of 2015/6. Our performance in the second half, once the strong upward trend in markets became established, has been less impressive when compared to our peers. Since our underlying investment philosophy lends itself to being more resilient in tough markets, we are not unhappy with this outcome.

I also draw your attention that returns of 8% p.a. from a balanced portfolio are not sustainable over the long term when cash yields are next to nothing. A return of even half this should be considered satisfactory. I suspect that investment conditions will become far trickier as we move into 2019.

Want to know more?
If you are interested in finding out more about our Managed Portfolio Service then please contact Jamie Farquhar, Business Development Director on 07776 224408 or jamie.farquhar@squaremileresearch.com